Why put more money into your Reserve Fund than necessary? I can’t think of a good reason! You don’t want to make Reserve contributions that err on the side of being too little, that may lead your Association toward a Special Assessment, borrowing, or the even higher costs that come with deferred maintenance.
A body of new legislation affecting Florida associations was signed into law on 6/1/2010. Most significant in our opinion was the “Distressed Condominium Relief Act”.
The “Funding Plan” is a calculated plan of regular monthly assessments and/or special assessments necessary to perform common area repairs & replacements in a timely manner.
“Fund your reserves above the 70% level”. That’s what you thought I would say, because our industry has been telling you that for years, right?
So your roof just failed, and it’s going to cost the Association $250,000. On one hand, it wasn’t really surprising, because the roof is 15 years old, right on track for this type of roof failure.
Associations often struggle to determine the appropriate level of Reserve funding for their communities. This challenge is understandable,
